Minutes IRSPractitioner's Liaison Committee Combined Meeting with by theolduni


                       IRS/Practitioner’s Liaison Committee
                      Combined Meeting with GA CPA Society

An IRS/Practitioner’s Liaison Committee Meeting was held on January 24, 2006. The Georgia Society
of CPAs hosted the meeting at offices located at 3353 Peachtree Road NE Suite 400, Atlanta, GA. Pete
Fishman, Chairperson, called the meeting to order at 9 am. The attendees were as follows:
                                         PHONE                  FAX
R Peter Fishman       Chairperson 404-252-3773             404-252-2509 fish1276@aol.com
Danny C Smith         IRS            904-665-0778          904-665-1881 Danny.Smith@irs.gov
Laurie Conner Jarrett NSTP           770-381-2119          770-381-8741 LaurieBConnerInc@aol.com
Harold A Stamey       GAPA           770-476-1943          770-476-3370 taxman@haroldstameycpa.com
Shirl Bishop EA       Record Sec 770-482-9380              770-482-7737 sbishopea@aol.com
Audrey Griffin EA GAEA               478-953-5016          478-953-6092 griftax@grifsolu.com
Jeffrey H Kess        State Bar      404-223-5900          404-524-4755 jkess@gomeldavis.com
Joel L Pascaner       GSCPA          404-262-2181          404-262-2781 jpascaner@bermanllc.com
Sam Grubbs EA         NATP           706-323-4340          706-323-7076 sbas@bellsouth.net
Willard N Timm        IRS Counsel 404-338-7980             404-338-7929 bill.n.timm@irscounsel.treas.gov
Paul Mayberry         IRS-SBSE       404-338-9699          404-338-9754 paul.mayberry@irs.gov
Steve Sheppard        IRS Appeals 404-338-7327             404-338-7354 charles.s.sheppard@irs.gov
John J Ranero         IRS Appeals 404-338-7312             404-338-7354 John.J.Ranero@irs.gov
Tad Ransopher         GA State Univ 404-651-4467           770-475-4408 Acctdr@gsu.edu
Betty J Allen         TAS            404-338-8085          404-338-8906 Betty.Allen@irs.gov
Larry Nichols         GSCPA          770-916-9910          770-916-9916 Lnichols@hsnacpas.com
Mark Mesler           Atlanta Bar 404-817-5236             866-509-4581 Mark.Mesler@Ey.com
David Delduco         IRS            404-338-7938          404-338-7928david.delduco@irscounsel.treas.gov
Craig McLaughlin      IRS            954-423-7748          954-423-7342 Craig.McLaughlin@irs.gov
Rob Casey             NATP           770-507-2112          770-507-1958 robkc@thetaxpros.com
David Fussell         NATP           706-232-8565          706-232-0477 romeea@bellsouth.net
L Eddie Brown         GAPA           770-719-4440          770-461-0234 taxpro@brownenterprises.com
Janet Grimes          IRS            404-338-9265          404-338-9594 janet.grimes@irs.gov
Kathy Hoffmeyer       IRS            478-752-6785          478-752-6818 kathy.hoffmeyer@irs.gov
Carol Myers           IRS            678-530-6529          678-530-6608 carol.myers@irs.gov
Rodney W Reynolds IRS-CI             404-338-2541          404-338-7524 rodney.reynolds@irs.gov
Jackie L Jefferson    IRS            770-936-4514                         jackie.jefferson@irs.gov
Jane P Brough         IRS            404-338-7905          404-338-8525 jane.brough@irs.gov
John M Stubbs         IRS            404-338-8867          404-338-8559 john.m.stubbs@irs.gov
Deborah Dickson       IRS            404-338-9625                         deborah.dickson@irs.gov

There were also eleven other invited guests from the membership organizations.

Pete Fishman, Chairman, began the meeting by explaining that this was a special meeting between IRS/Practitioner’s
Liaison Committee and the Georgia CPA Society. Pete gave a brief description of the purpose and function of the
IRS/Practitioner’s Liaison Committee. He welcomed everyone to the meeting.

Shirl Bishop, Recording Secretary, had previously emailed the minutes of the prior meeting to all members. The
minutes from the last IRS/Practitioner’s Liaison Meeting were approved.

Pete Fishman, Chairman, introduced Joel Pascanner and John Masters, both CPAs from the GA CPA Society, to
lead the remainder of the meeting.

                                              Page 1 of 9
Joel Pascanner, CPA, Chairman of the Tax Section of the GA CPA Society, welcomed everyone to the Annual
Tax Section/IRS Meeting and gave a brief overview of the annual meeting.

John Masters, CPA, IRS Annual Meeting Chair, introduced Danny Smith from the IRS.

Danny Smith, IRS-Senior Tax Specialist, Stakeholder Liaison, gave a brief overview of the agenda for the meeting.
The GA Society of CPAs designed a survey with questions and topics of concern when dealing with the IRS. That
survey was distributed to all the members of the tax organizations in Georgia. The results of that survey were given to
the IRS personnel and they will make a presentation based upon those questions and areas of concern as well as
information about what is new with their function at the IRS.

Danny introduced Kathy Hoffmeyer, IRS Senior Stakeholder Liaison, to the group. Kathy and Danny are the two
main contacts for practitioners in the State of Georgia. Their job is to help practitioners navigate within the IRS.
Kathy spent a great deal of time on the survey results and determined the most attention should be in the Campus and
Collection areas. Thus, those two areas will receive the most time for their presentations.

Danny gave us the sad news that David Spandle, IRS Territory Manager for Collections passed away in December and
we will all miss his participation in the Liaison Meetings.

Craig McLaughlin, IRS-Area Manager Stakeholder Liaison Georgia/Florida, said that he would send the survey
results to others throughout the country so the directors of the various operating organizations of the IRS will have an
opportunity to review and get an idea of how the IRS is doing. The issues and concerns will be elevated to
headquarters where there is a staff to work on resolving the problems. When he gets feedback from headquarters, he
will share it with the practitioners at the next liaison meeting if available.

Craig, Danny, and Kathy send headliners to the Liaison members who then distribute that information to their
organization’s members. This is a valuable tool for the IRS in the area of outreach. Craig said that the IRS will begin
having phone forums for practitioners in February and he hopes that everyone will participate from the convenience of
their office. He offered his time as well as Danny and Kathy’s time to make presentations at meetings and seminars.

Bill Timm, IRS-Associate Area Counsel, explained that he and his staff of attorneys represent the IRS in Tax Court.
They have four or five calendars a year in Atlanta. The next calendar is on March 6, 2006, and he invited everyone to
attend. Much of the work is currently in the area of Family Limited Partnerships and other tax shelters. Bill said the
National Office is trying to give more guidance and education to individuals on the front end so practitioners will
know the IRS’s position and advice can be given accordingly. They also see collection due process, innocent spouse,
and other regular cases as well and advise the IRS Revenue Officers and Revenue Agents on their cases.

Bill said that the Bankruptcy Court is trying to work through the many cases that were filed on October 16, 2005. Out
of the over two million cases that are filed annually, the IRS has some involvement in about one third of them. Bill
will be giving a presentation on the new bankruptcy law to the Liaison Committee in one of the next quarterly

Janet Grimes, IRS-Collection Group Manager, began by giving the group her phone number (404-338-9265). Her
hours are 7am – 3:30pm and she asked that the practitioners call her if there are problems with her Revenue Officers.
One of the things she hears over and over again is that practitioners cannot get in touch with the Revenue Officers.
When they work in the field there is a requirement that they return any voice mail messages within 24 hours and they
must check their voice mail at least two times each day. If they are on extended leave, they should leave a message
along with information about another contact person.

Practitioner Comment: There are still problems and the Revenue Officers are still unreachable and do not respond to
messages especially when they are no longer working on the case due to relocation, etc. Their voice mail message
does not say that they are on leave or on long-term assignment and no other contact information is available. It
appears that there is not enough staffing and no one to talk to when there is a problem or information is needed.

IRS Solution: Janet suggested contacting the Manager. She will report the problem as well.
                                              Page 2 of 9
In order to get a levy released, documents need to be submitted. Normally that requires an appointment. As a group
manager, Janet said she could release a levy if there was an error made without an appointment. If the levy presents a
hardship, ask to speak with a manager. Janet also said that the taxpayer and/or the POA should be receiving a copy of
the levy release. You should ask the Revenue Officer to fax that release to you if you do not receive it via the mail.
Unless there is a financial hardship, it should be mailed within 7-10 days.

Practitioner Comment: Some levy releases forms are taking up to 30 days or longer to be mailed even when it is a
hardship issue.

Janet said that possibly the hardship criteria needs to be addressed and perhaps the definition for hardship criteria is
being misunderstood.

Practitioner Comment: ACS staff is not accessing IDRS when they are speaking with the POA on the phone.

Janet suggested that when the initial contact is made with the Revenue Officer, ask for their manager’s name and
phone number. She is going to make the suggestion also that the Revenue Officer leave the manager’s name and
phone number on their voice mail and a contact person in the event that they cannot be reached.

Practitioner Comment: The manager and contact information be listed on the IRS notice.

Practitioner Comment: Something should be done to reduce the wait time on the toll free number.

Practitioner Comment: Matters pertaining to Collections and ACS should be able to be resolved via the Practitioners
Priority Service. Currently when practitioners call PPS, they are frequently told the issue can only be resolved by
calling ACS or Collections.

Practitioner Comment: Currently when dialing the phone number for collections, frequently the call is being routed to
Customer Service. There should be a 1-800 for collections exclusively.

Danny Smith said that when the private collection agencies get involved this whole area of concern will be impacted.

Janet addressed the issue of penalty abatements. Since late last year, Philadelphia Service Center is servicing this area.
The abatements are being transmitted electronically. This should reduce the amount of time for abatements.

Another issue that was addressed in the survey is that Revenue Officers are demanding unreasonable financial
information. Many times the practitioner will ask for an installment agreement and the Revenue Officer wants to find
out if there are assets that can be liquidated and then the installment agreement is not allowed. If this becomes a
financial burden, contact Janet and she will try to assist. One of her goals is to give quality customer service and she
will call the manager if the Revenue Officer is not in her area.

The survey also revealed that some of the Revenue Officers are rude and not professional. Janet said that she will
address that issue with her Revenue Officers if you will let her know when it happens. Everyone deserves respect so
she suggests that you report the Revenue Office if this happens to you. Abuse complaints can be given to the
Treasury Inspector General for Tax Administration (TIGTA) at 1-800-366-4484 or at

Practitioner Comment: It took one taxpayer over 5 weeks to get a payoff from the IRS for the closing on his home.
This occurred about 3 months ago. Also the lien release needs to be sent to the POA and not only to the Courthouse.

Janet said there is a centralized lien unit now and they are working on this problem. If it happens again, please call
Janet. Also only the last four digits of the Social Security Number will be on the liens from now on because of identity

                                                   Page 3 of 9
Janet addressed the Offer-In-Compromise program. This program is being reorganized. There will only be three
locations that will handle offers in the nation-California, Florida, and San Antonio, TX (Atlanta is part of San
Antonio). The offer specialist asked Janet to stress that the $150 fee must accompany the offer. An offer should be an
amount that the IRS cannot get through normal channels. Do not submit offers that are unreasonable and make sure
the taxpayer is in compliance with filing their tax returns. If they are in bankruptcy, the offer will not be worked and
make sure the 656A is complete for all tax periods. If they have a company and the company is not in compliance, the
company should file an offer as well. Make sure there is a 433A and 433B attached and make sure the taxpayer signs
those forms and submit all financial documentation. The POA form should also be attached to the offer. If a
corporation files an offer and they are not in compliance with their tax deposits for the last two quarters, they are not a
candidate for an offer.

Practitioner Comment: By the time an offer is worked much of the financial information is old and not much time is
then given to the practitioner to compile up to date information. It seems as if the offer must be submitted two times.
Please try to work the offers faster so the information provided is still fresh and accurate or wait until the offer
specialist begins working the offer and then ask for submission of the financial information.

Practitioner Comment: In December practitioner received a letter from the IRS stating that the offer had been
rejected. It said that the offer had been rejected because the taxpayer had the ability to pay but did not say why or
explain. A detailed explanation should be given so that the representative can verify and possibly submit additional
information to dispute or appeal the issue.

Practitioner Comment: The National Office should review the operating expenses on vehicles. The current standards
for operating more than one vehicle is way too low and in light of the current gas and repair prices this is a real
hardship on taxpayers.

Danny Smith asked the organizations to share the phone numbers that were provided to the Liaison Committee for the
IRS personnel and Territory Managers with their members. It is so important that practitioners know who to call when
problems arise. This information should be posted on all association websites and the members should be aware of
the location for later reference. This information is updated periodically and the updated names and phone numbers
should be available to all the organization membership.

Carol A. Myers, IRS-Program Manager Atlanta Campus, stated that there are three major functions at the Atlanta
Campus. The first function is the submission processing function-processing the paper returns. The second function is
the accounts management function. This function manages the major toll free telephone calls on the 1-800-829-1040
and the refund toll free number. Their specialty is the individual account inquiries and they do not handle the tax law.
They also process the 1040X forms that are sent to the Atlanta Service Center and they handle the non-collection
related correspondence. The third function is the compliance organization which is a lot of the non face-to-face
compliance activities. ACS is located at the Campus as well as the automated under-reporter, exam and other
compliance functions.

There are ten campuses throughout the United States. Two of the submission processing centers have been closed
(Brookhaven and Memphis) due to electronic filing. There will be additional closures and the Atlanta submission
processing center is scheduled to close in 2011. The paper returns will eventually be processed by three centers
(Kansas City, Austin, and Fresno). Thus the mailing addresses will continue to change until all the closings have
occurred. There will still be an accounts management and compliance operation at each campus after the submission
processing operations are closed.

Carol said that when paper returns are filed sometimes pages from the returns are misplaced. They try to be careful but
sometimes it just happens and they apologize.

Practitioners requested on the survey that 1040X be eligible for electronic filing. Carol said there is no plan for this in
the near future. The normal processing time for a 1040X is eight to twelve weeks. Most of the employees are crossed
trained to handle the phones and customer service as well as the processing of the returns. The volume of calls during
tax season causes the processing of the 1040X returns to take even longer. Some practitioners suggested in the survey
that an acknowledgement be sent out on 1040X returns just as an acknowledgement is sent on correspondence.

                                                  Page 4 of 9
Carol said they have a new system in accounts management called the correspondence imaging system. When
correspondence and 1040X returns (not original returns) are received, they are imaged and the representatives can
work off of the images. This should reduce the amount of paperwork that is lost. It is now located in five of the
campuses (Atlanta is one of them) and is scheduled to be in the remaining five within the next two years. This should
speed up response time because retrieval will be quicker.

Some practitioners suggested that the language on IRS notices be reviewed and improved. The IRS has set up an
Office of Notice Improvement where they are working on the notices. They are developing language standards which
will provide for plain language, consistent terminology, and standard explanations.

The Practitioner Priority Service phone line is answered in five of the account management sites. It is not answered in
the Atlanta Campus. Three of the sites answer the individual inquiries (Brookhaven, Philadelphia, and Memphis).
Cincinnati and Ogden handle the business inquiries. The wait time is long and the suggested time for calling is early in
the morning and late in the day and at the end of the week. Hours are Monday-Friday 7:30am to 6:30 local time.
The routing system does not allow for you to call in and speak with the same representative each time you call. The
calls are routed with the least amount of waiting time as the focus. PPS handles account calls only and they will refer
to another section if they cannot assist.

The CP2000 notices are handled at the Campus in the automated under-reporter section.

Practitioner Comment: When calling the Practitioner Priority Service regarding a CP2000 notice, PPS says they
cannot assist and there is no one to assist you in the area that issues the CP2000 notices. If someone answers the
phone, they tell you that you must send your response in writing. The reply must be in writing but no correspondence
is ever sent back after the reply is sent to the IRS. There should be someone to call when a CP2000 notice is issued.
Carol said that Ken Corbin is the operations manager and he can help with these situations and she will inform him of
the concerns.

Practitioner Comment: The IRS should perform a matching program on Social Security Number 1 and Social
Security Number 2 from the tax returns. This practitioner amended a tax return and put the Spouse’s name second on
the amended return. The original return had been prepared with the Spouse’s name first on the return. Three years
later they receive a notice because a tax payment had been recorded under the spouse’s social security number and it
had never been applied to the return. There should be a way of cross matching both names and social security numbers
from a tax returns and estimates.

Carol said when applying for Employer Identification Numbers online all information must be completed and accurate.
When 8A is checked “other”, the SS4 cannot be processed online. If the SSN or EIN on 8A or 7B cannot be verified,
the SS4 cannot be processed online. If the practitioner’s address is entered as the mailing address for the applicant, the
SS4 cannot be processed online. It should be noted that if something is typed incorrectly, the incorrect information
will be processed. There will be a Mod EIN beginning in 2007 – it will have a probe and response feature similar to
Turbo Tax when applying.

Practitioner Comment: The third party designee should be valid for longer than three days when applying for an EIN.
Three days is not long enough to determine if there is a problem and if the EIN is not issued in three days there is a

The redesign of the 941 in 2005 may have impacted some of the incorrect processing of federal tax deposits.
Hopefully this will be corrected soon. Federal Tax Deposits are processed in Cincinnati and Ogden.

                                                  Page 5 of 9
Steve Sheppard, IRS-Appeals, manages the settlement officers that handle the collection related appeals and
John Ranero manages the appeals officers that handle the examination/income tax related issues. Steve has nine
settlement officers and they cover Atlanta, Macon, Augusta, Savannah, Albany, and Columbus. Steve said
practitioners are underutilizing them here in Atlanta and they are now taking cases from all over the United States. He
estimates that one third of the cases in his group are from other states. He encourages practitioners to use appeals for
issues that cannot be resolved. He cannot guarantee a favorable outcome on the case but he can guarantee a fair
outcome. They do reverse some collection decisions and they try their best to be independent. They accept a number
of OIC cases in appeals as well.

Survey participants suggested that appeals have more officers with law degrees and two of Steve’s settlement officers
are attorneys. Steve said he understands that sometimes it appears like you are dealing with a Revenue Officer because
sometimes they are making that first line collection decision. They will be hiring more appeals officers in the near

Bill Timm said that very often the Court is upholding the settlement officer’s determination and he suggested that
practitioners meet with the settlement officer if he makes contact.

Steve said they now have about 300 people scattered throughout the country and cases are assigned depending upon
the type of case. Steve’s office is in the Summit Building and he is available for an appointment for a face-to-face

John Ranero, IRS-Appeals/Income Tax, said that since October 1, 2005, Atlanta is working the Georgia OIC cases.
John’s manager is in Philadelphia and Steve’s manager is in Washington. John is short several appeals officers. In the
past four years, John has lost 7 appeals officers. He has taxpayers who are about a year into the appeals cycle who
have not had a conference yet. All of his resources are now being used on docketed cases. He asked that everyone be
patient until approximately April when they can get back on top of things again.

Jackie Jefferson, IRS-Territory Manager for Taxpayer Assistance Centers in GA, said there are currently 12
taxpayer assistance centers in Georgia. They are known as the face of the IRS and they try to handle the walk in
business at the sites. Appointments are not required; however, the issue may need to be referred to someone with
expertise in that area of taxation. Some of the basic services provided at the taxpayer assistance centers are inquiries
or adjustments to tax accounts, payment plans, and questions about IRS notices and letters and levies on wages or bank
accounts. Locations and phone numbers of the taxpayer assistance centers may be obtained at www.irs.gov (local
contacts). You may call and set up an appointment by leaving a message and someone will return your call within 2
business days. If you are not called within 2 business days, let Jackie know by calling him. Low Income taxpayers
may also receive free tax return preparation. The income must be $38,000 or less and social security cards for
dependents must be provided. Tax prep appointments may be made five days in advance or taxpayers may wait on a
first-come first-served basis if all the appointments for that day have not been filled. The employees are trained and
they insure a high level of quality and many are certified in special areas. Hours of service are 8:30am to 4:30pm.
All tax returns are e-filed – no paper returns are prepared.

John Stubbs, IRS-Supervisory Specialist, SPEC (Stakeholder Partnerships Education & Communication),
explained that SPEC is the outreach and education function of the IRS’s Wage and Investment Division. Its approach
is to combine resources and goals with other organizations for better access to lower income populations. Their most
important product is income tax assistance for low income taxpayers with an emphasis on disabled elderly and English
as the second language taxpayers. In the State of Georgia there are just over 200 VITA and AARP tax aide sites. The
income level for SPEC is normally less than $37,000. Coalitions with all types of organizations such as corporate,
faith-based, nonprofit, educational, financial, and government have reached out with helpful tax information to people
who can benefit from it. These coalitions educate families about tax issues, they prepare income tax returns and they
encourage financial responsibility by working with banks and credit unions to offer low to moderate income workers
the opportunity to open bank accounts and encourage families to use a portion of their tax refund to begin saving.

                                                 Page 6 of 9
Jane Brough, IRS-Government Liaison for the State of Georgia, has been dealing with many IRS/State tax issues
for this filing season. She serves on the Taxpayer Assistance Blueprint committee mandated to provide a report to
congress by April 14, 2006 on all services provided. She worked with the State of Georgia on access to TDS and all
coordinators for the Department of Revenue have been trained on access to TDS online.

The State Income Tax Levy Program is operating but they are having problems. Because the State is manually
inputting the levy documents and the IRS tapes are being sent to them weekly, payments are crossing and many of the
refunds are being put into a manual refund cycle thus delaying the refund.

Since the State of Georgia does not require that you file an extension form with them and they have always accepted
the paper IRS extension form, when an extension is filed electronically the state is not getting a copy of that e-filed
extension. Jane has discussed this matter with the State of Georgia and the coding on the transcript should verify to the
Department of Revenue that a timely electronically filed extension form has been accepted. DOR personnel have
been trained on this matter. The transcript code number for Extension of Time for Filing is 460.

Lien Releases are a problem in the State of Georgia because there are 159 counties and 159 different ways of recording
and releasing liens. Jane is working with the county governments to get this matter resolved.

In December a new renewed agreement with the Department of Banking and Finance was signed. This agreement
allows the IRS and the Department of Banking and Finance to share the audit information on Check Cashers and
Money Services Banking businesses. Additional people are being trained in this area.

Jane has been working with the Taxpayer Assistance Blueprint Committee which is developing a strategic plan for the
next 5 years for IRS customer services in relating to individual income taxpayers and Schedule C filers. They are
reviewing the types of services offered which include phone, internet, email, etc. so that all information given to
taxpayers is consistent and accurate. Focus questions have been distributed through the National Organizations for
Tax Practitioners and Jane encouraged all practitioners to respond. A report must be presented to congress by
April 14, 2006.

Rodney Reynolds, IRS-Special Agent CID, announced that he will be retiring on March 3, 2006. Patricia Bergstrom
will be the new public information officer and her phone number is 404-338-9405. Rodney’s phone number is
404-338-7541 and Patricia may switch to his number when he retires. There is a general CI number which is 404-338-
7500. The Fraud Hotline will no longer be maintained. There is a form on the IRS website which can be used to report
fraud. If you have information, you can make an appointment to come into the CI office and talk to an agent. They
have offices in Augusta, Columbus, Macon, Savannah, and in Atlanta (Summit Building, The Koger Center Office,
and The Panola Road Office).

Betty Allen, Georgia Taxpayer Advocate, wanted everyone to know that there are two taxpayer advocates in
Georgia. One is located at the Atlanta Campus and Betty’s office in downtown Atlanta. Since August Betty’s
inventory has grown tremendously due to the hurricanes. The survey indicated complaints regarding the answering of
the phones. Betty has an intake team in her office who answers the phones and if they are on the phone the lines roll to
secretaries who will answer. Once the case is assigned, the case advocate stays with the case until it is closed.
Decision making is a big concern of taxpayers but policy is set at the national office and not at the local level, thus they
can only implement the policy that is given to them. Delegated authorities are mandated by the National Office. Local
employees have the skills and knowledge to make a lot of decisions or to make adjustments to accounts; however,
delegated authorities have been changed on the national level. TAS has service level agreements with the operating
divisions and they must prepare the case and send it to the operating division if it is out of their authority. TAS is not
permitted to give the name of the IRS personnel they are working with in order to resolve a case.

If you have a levy filed on an ongoing business and it is a hardship, you should file a 911 and submit it to Betty’s
office so they can assist in getting the employees paid. They have elevated their concerns to the national office
regarding some ACS sites where the employees are not easy to work with. It is very hard to reach a manager in ACS
so it is better to contact Betty’s office if there is a problem with ACS. However, you still must prove that a hardship
exists in each case.
                                                       Page 7 of 9
Betty has the responsibility for the Low Income Tax Clinics and they work very closely with the sponsors and

Betty is also the Case Resolution Program Manager for the IRS Nationwide Tax Forums and the schedule is as
                 June 27-29             Anaheim, CA Hilton Anaheim
                 July 11-13             Chicago, IL     Hilton Chicago
                 July 25-27             Atlanta, GA     Hilton Atlanta
                 August 1-3             Orlando, FL     Disney’s Coronado Springs Resort
                 August 22-24           Las Vegas, NV Rio All Suites Hotel
                 August 29-31           New York, NY Hilton New York

Please consult the IRS Website for more details and hotel room rates.

Paul Mayberry, IRS-Territory Manager Examination, manages the Exam Field Operations for Georgia. Their
focus is on Small Business Self Employed (SBSE). Their objectives for this year is to recruit, hire and train. In
October they hired 15 new agents for Georgia-10 of them are in Atlanta. In January four more where hired for Atlanta,
in April they will hire for the southern Georgia, and in June approximately 30 more agents will be hired. Last year was
the first time in about five years that they delivered their work plan and these new agents will be working hard to
deliver again. When congress needs more money, the IRS gets to hire. It takes about two years to get a Revenue
Agent recruited, hired, and trained. Agents have no less than a 3.0 in accounting and they are tested on basic
accounting skills. Salary ranges are $28,000 to $63,000. Grade 11 salary range is $52,000 to $77,000.

The survey results showed complaints about the length of time to complete the audit and lack of communication.
Exam Re-engineering states that the Agent must sit down and discuss with the taxpayer or representative the scope and
length of the audit. The Group Manager is expected to quarterly review workloads to make sure cases stay on track.
They are committed to make their exam plan and they will reduce the length of time the exam is in process. Paul’s
personal commitment is to personally review every case in process that is over a year old. The inexperience of the new
agents will be the biggest problem that practitioners will face as these new audits take place. Exam re-engineering also
outlined that the focus should be on the “big stuff-not the small stuff”. If practitioners are finding that the agents are
not concentrating on the guidelines of Exam Re-engineering, the Group Manager needs to know about it. Paul said he
can be contacted at any time if there is a problem.

Paul does operation reviews of each of the groups and he is present in on one of the workload reviews with the
manager and the agent. The agent that Paul picks is the one with the highest overage and/or the highest number of
cases in process or problems. One of the things Paul is observing is that the agent is not controlling the audit and many
times the agent has not met with the taxpayer when he should have. Agents are authorized to work at home, but Paul
prefers that they work in the field.

Another NRP phase is being conducted on flow-through returns. For the State of Georgia, there will be approximately
150 returns selected. In the whole gulf coast area there are approximately 500 returns.

Deborah Dickson, IRS-Manager Estate & Gift, announced that everything with Estate and Gift is filed in
Cincinnati. Deborah also announced that Flips are on their way out and if you cannot justify, do not focus in that
direction. This past year there have been some fraud prosecutions in E&G. Deborah’s phone number is 404-338-9625
and if you have questions, do not hesitate to call her.

Joel Pascanner, CPA, announced that the Georgia Society sponsors a telephone call-in hotline. It is co-sponsored
with the Atlanta Journal/Constitution and he asked for volunteers for the two two-hour shifts. They need
approximately 30 volunteers. There will be a lot of advertising promoting this hotline so volunteers are greatly

                                         Page 8 of 9
Next Meeting

Pete announced that the next meeting will be on April 25, 2006.

Pete encouraged all members to continue to submit topics for future meetings. If your members have concerns, please
ask them to send you the information. Please submit your requests to Pete Fishman at fish1276@aol.com or Shirl
Bishop EA at sbishopea@aol.com no later than 30 days prior to the meeting date. Of course, you can submit items at
anytime – you do not have to wait until 30 days prior to the meeting.

Please remember to share the minutes of this meeting with the members of your organization.

The meeting was adjourned.

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